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Navigable Slide Index

1. Introduction
2. What is CLS?
3. Outline
4. Overview of the FX market
5. Why is the FX market important?
6. What are the main types of trades?
7. Spot transactions
8. Outright forwards
9. Foreign exchange swaps
10. Example of FX swap
11. Currency swaps
12. Example of currency swap
13. Currency or foreign exchange options
14. Example of currency / foreign exchange options
15. Evolution of volumes in recent years
16. FX committees
17. FX settlement before CLS
18. An example
19. Banks balance sheets
20. Successful settlement before CLS (1)
21. Successful settlement before CLS (2)
22. Foreign exchange before CLS
23. Market risk
24. Settlement risk
25. Liquidity risk
26. Credit risk
27. Unsuccessful settlement before CLS
28. Herstatt risk
29. Bankhaus Herstatt
30. Market disruptions following Herstatt
31. Other examples of market disruptions
32. Policy responses
33. Reducing FX settlement risk
34. Overlapping opening times
35. Improving national payment system
36. The economics of CLS
37. CLS is designed to limit settlement risk
38. PvP: the key feature of CLS
39. Settlement with CLS
40. After pay-in
41. CLS Bank after pay-in
42. After settlement (1)
43. After pay-out
44. Foreign exchange with CLS
45. Saving liquidity (and adding risk?)
46. After initial pay-in
47. CLS Bank after initial pay-in
48. After settlement (2)
49. After final pay-in
50. The risks of CLS
51. Risk management
52. Overdraft facilities
53. Net Positive Overall Value
54. Short Position Limits (SLP)
55. Aggregate Short Position Limits (ASLP)
56. Liquidity providers
57. Loss sharing arrangements
58. Liquidity management
59. In-out swaps
60. Example of in-out swaps
61. Liquidity groups
62. Progress in reducing FX risk (1)
63. Progress in reducing FX risk (2)
64. How is CLS organized?
65. Governance
66. Access to CLS / memberships
67. Strong growth in 3rd parties
68. Eligible currencies
69. Linkages with central banks
70. Supervision and oversight
71. Cooperative oversight arrangement of CLS
72. Goals of the arrangement
73. CLS settlement process
74. CLS and the crisis
75. Future directions for CLS
76. Conclusion
77. References

Topics Covered

• Overview of the FX market
• The economic role of CLS
• How has CLS changed FX settlement?
• How is CLS organized?
• The effect of CLS on international payments
• Future directions for CLS and regulatory implications

Links

Series:

• Effective Oversight of Payment and Settlement Systems

Categories:

• Finance, Accounting & Economics

Talk Citation

Publication History

• Published on March 31, 2010